On Tuesday, July NY world sugar #11 rose by 1.90% to close at +0.28, while August London ICE white sugar #5 increased by 1.03% to +4.50. The uptick in sugar prices is linked to Brazil’s announcement of new fuel subsidies aimed at countering soaring gasoline and diesel prices due to the Iran war, which may lead sugar mills to allocate more cane for ethanol production.
The International Sugar Organization (ISO) forecasts global sugar production for 2026/27 to decrease by 1.15% year-on-year to 180 million metric tons (MMT) and anticipates a deficit of 262,000 MT. Concurrently, concerns about supply disruptions from the prolonged closure of the Strait of Hormuz have been noted, as it restricts around 6% of the world’s sugar trade, contributing to rising prices.
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